# Fibonacci Extensions Projections

Target point 4 and retracement point 3 can be calculated by measuring the number of pips from point 1 to point 2 and multiplying by the factors below:

 Fibonacci Formula for points Target 3 or 4 38.2% (2-1) x 0.382-2 = 3 50% (2-1) x 0.5-2 = 3 61.8% (2-1) x 0.618-2 = 3 76.4 % (2-1) x 0.764 -2 = 3 86.0% (2-1) x 0.86-2 = 3 138.2% (2-1) x 1.382+ 1=4 161.8% (2-1) x 1.618 + 1= 4 261.8% (2-1) x 2.618+ 1=4 100%

100%

Some charts have these extensions available so calculations are not needed. Convergence

EURUSD.MIS 1.1675 1.1676 Î.1671 1.1673

EURUSD.MIS 1.1675 1.1676 Î.1671 1.1673 Created with Interbank FX Trader, cgi 2002 MetaQuotes Software Corp,

Take Fibonacci retracements from 3 different lows or highs to get a cluster. This mil give a level with a strong possibility of a turning point.

A convergence of lines is shown in the oval and is where the 50% fibonacci (dotted line) and Pivot line (gold line) are at approximately the same value and where SI and a trendline are dose by.

Fibonacci clusters are where a 38.2% off one high and 50%oR off another and a 61.8% off another, all converging on same area of chart. 